Strong Sector Fundamentals
The U.S. is experiencing an unprecedented demographic shift, which is fundamentally reshaping healthcare demand and positioning MOB as a resilient and attractive investment opportunity. Currently the U.S. population sits at approximately 337 million and is projected to add nearly 32 million over the next 25 years.1 This expected annual growth is expected to bring changes to the population composition – specifically older generations, as the 65-plus population will grow by 2.2% annually, and the 80-plus cohort will grow at 4.7% annually.1 This demographic shift underscores the growing demand for healthcare related real estate to support an increasingly elderly population.
Average Growth of Population by Age Tranche1
Data as of July 2025
1 Worldbank.org – Population Estimates and Projections – 2024
Supply/Demand Dynamics
Over the last 14 quarters, absorption has outpaced new supply and occupancy rates have strengthened – holding steady at 93%, up from the low of 91% seen during the pandemic.2,3 Strong occupancy is primarily driven by the in-person nature of many medical services – Americans will always need to see a doctor or schedule a procedure.
Additionally, advancements in medical technology, particularly minimally invasive techniques, along with changing patient preferences for greater convenience and accessibility, is fueling MOB demand. Over the past decade, hospital admissions have declined by 15%, while outpatient visits have increased by 10%.4 Medical innovations have enabled many procedures to move from inpatient to outpatient settings. In fact, between 2018 and 2023, 59 medical procedures were approved for outpatient migration.5
U.S. MOB Demand vs Supply6
MSF = Millions of Square Footage; TTM = Trailing Twelve Months; YOY = Year Over Year
Data as of July 2025
2 Globe St. Medical Outpatient Occupancy Reaches 92.8% Amid Aging Population, Spending Surge. January 2025
3 HREI. Thought Leaders: U.S. medical office occupancy remains steady at 91.5% throughout the COVID crisis. October 2020
4 Nuveen. Medical outpatient buildings are well-positioned to outperform. August 2024
5 CBRE – 2025 U.S. Healthcare Real Estate Outlook
6 JLL. 2025 Medical Outpatient Building Perspective
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